THE COVID-19 CRISIS IN EMERGING AND DEVELOPING COUNTRIES: IMPACTS AND PROSPECTS

Alexis BONNEL Conseiller prospective, climat et développement durable, AFD

Hélène DJOUFELKIT Directrice, Département diagnostic économique et politique publique, AFD

Rémy RIOUX Directeur général, Agence française de développement (AFD)

Cécile VALADIER ** Directrice adjointe, Département diagnostics économiques et politiques publiques, Agence française de développement (AFD). Contact : valadierc@afd.fr.

Unlike in 2008 during the global financial crisis, emerging and developing countries have been hit hard by the Covid-19 crisis. Each region of the developing world will be in recession in 2020, which is unprecedented historically. The collapse of international trade, investment and commodity prices along with the sudden stop in capital flows are the main channels through which emerging and developing countries will be impacted. Vulnerable countries and people are likely to suffer the most from the economic crisis, putting social stakes front and center. As emerging and developing countries’ financing constraints are painfully binding, public development banks are in a position to help rise to the challenge of building back better.